Railways in the UK are operated under a licensed franchise system following the breakup of the state-owned British Rail, which was privatized gradually from 1994 to 1997. The rail infrastructure is owned and managed by Network Rail, described as an ‘arm’s length’ public body of the Department of Transport – but the rail services are operated by private companies under license to the government.

The government exercised its rights last year. Northern Rail was at the time operated by Arriva Rail North, but the service was taken over (or taken back) by the government after a series of problems including delays and cancellations to services.